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C01 - Fundamentals of Management Accounting (2011 syllabus) A guide for students pot

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C01 - Fundamentals of Management Accounting 2011 syllabus A guide for students Introduction CIMA has revised its Certificate in Business Accounting syllabus for 2011.. Assessments base

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C01 - Fundamentals of Management Accounting (2011 syllabus)

A guide for students

Introduction

CIMA has revised its Certificate in Business Accounting syllabus for 2011 This revision is a closer fit

with our 2010 chartered management accounting qualification

The updated content reflects significant emerging issues facing the business and financial

communities like the 2008 banking crisis and credit crunch The updated syllabus also uses a new

format which links the lead aims, learning outcomes and syllabus content more explicitly

Assessments based on the CIMA certificate in business accounting 2011 syllabus have been

available since October 2011

Examinations based on the 2006 syllabus will also be available until 30 June 2012

This guide will provide you with information about the revised C01 Fundamentals of Management

Accounting 2011 syllabus

Section A – The syllabus structure and learning outcomes

The C01 syllabus is split into 5 topic areas:

A: The context of management accounting (10%)

B Cost identification and behaviour (25%)

C: Planning with organisations (30%)

D: Accounting control systems (20%)

E: Decision making (15%)

Go to www.cimaglobal.com/C01 for the full syllabus

A percentage weighting is shown against each topic area This is provided as a guide to the

proportion of study time each area requires The study weightings also indicate the approximate

proportional distribution of marks that will be allocated to topics in any single computer based

examination

It is essential that all areas in the syllabus are studied, since any single exam question may examine

more than one topic

Each subject within the syllabus is divided into a number of broad syllabus topics The topics contain

one or more lead learning outcomes, related component learning outcomes and indicative knowledge

content

A learning outcome has two main purposes:

(a) to define the skill or ability that a well prepared candidate should be able to exhibit in the

examination

(b) to demonstrate the approach likely to be taken in examination questions

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The learning outcomes are part of a hierarchy of learning objectives The verbs used at the beginning

of each learning outcome relate to a specific learning objective

The following table lists the hierarchy of learning objectives and verbs used by CIMA

In the CIMA Certificate in Business Accounting syllabus only verbs from levels 1, 2 and 3

(knowledge, comprehension and application) are used in the component learning outcomes and

therefore only verbs from these three levels can be used in the assessments

Level 1 | KNOWLEDGE

What you are expected to know List Make a list of

State Express, fully or clearly, the details of/facts of Define Give the exact meaning of

Level 2 | COMPREHENSION

What you are expected to understand Describe Communicate the key features

Distinguish Highlight the differences between Explain Make clear or intelligible/State the meaning or

Purpose of Identify Recognise, establish or select after

Consideration Illustrate Use an example to describe or explain

Something

Level 3 | APPLICATION

How you are expected to apply your knowledge Apply

Calculate

Put to practical use Ascertain or reckon mathematically Demonstrate Prove with certainty or to exhibit by

practical means Prepare Make or get ready for use Reconcile Make or prove consistent/compatible Solve Find an answer to

Tabulate Arrange in a table

Level 4 | ANALYSIS

How you are expected to analyse the detail of what you

have learned

Analyse Categorise

Examine in detail the structure of Place into a defined class or division Compare and contrast Show the similarities and/or differences

between Construct Build up or compile Discuss Examine in detail by argument Interpret Translate into intelligible or familiar terms Prioritise Place in order of priority or sequence for action Produce Create or bring into existence

Level 5 | EVALUATION

How you are expected to use your learning to

evaluate, make decisions or recommendations

Advise Evaluate Recommend

Counsel, inform or notify Appraise or assess the value of Propose a course of action

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Example from 01 Fundamentals of Management Accounting syllabus

Component learning outcome – ‘Explain the importance of cost control and planning within

organisations‟

The verb „Explain‟ is from Level 2 in the learning objective hierarchy Therefore an assessment

question based on this component learning outcome could use one of the verbs from level 2 or from

the lower level 1 but a higher level verb could not be used to test this learning outcome

The skills or ability demonstrated at level 4 (analysis) and level 5 (evaluation) will not be examined at

the Certificate level and verbs from these levels will not be found in the component learning outcomes

for any Certificate syllabus

Section B – Studying for C01 Fundamentals of Management Accounting

We recommend that, wherever possible, you attend a course taught by an approved CIMA Learning

Quality Partner Visit our college list at www.cimaglobal.com/colleges to find details of colleges local

to you that teach the Certificate level

The official CIMA study texts have full syllabus coverage for each new Certificate subject

Please remember that exams based on the CIMA certificate in business accounting 2011 syllabus

have been available since 3 October 2011 and exams based on the 2006 syllabus will also

be available until 30 June 2012

Please ensure you are using the correct syllabus textbooks or learning material for the exams

you intend to sit Find out more and order your copies of the CIMA study texts from CIMA

Publishing

You can also study for the certificate subjects with CIMAstudy.com - the CIMA endorsed online study

system

Each subject has a „Study Resources‟ area on the website From here you will find guides, reading

lists and useful articles

Question practice is an important part of preparing for the exams – find more information about

CIMAsphere, our online community, provides a resource for students to share information and find

expertise and support among peers, as well as gain advice from CIMA members and alumni See the

certificate level discussion board

You can choose to study for and take the five Certificate exams in any order and combination to suit

your own study requirements See Section F of this guide for links to further guidance

Section C – Assessment strategy and assessment information

All exams under the 2011 Certificate syllabus are computer based You can sit the exams at any time

of the year in one of our accredited computer based assessment centres worldwide

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For C01 Fundamentals of Management Accounting there will be a two hour computer based

assessment, comprising 50 compulsory questions, each with one or more parts

A variety of objective test question styles and types are used within each of the assessments The

most common type of objective test question is multiple choice We also use other types of objective

test questions such as matching pairs of text and graphic, sequencing and ranking, labelling diagrams

and single and multiple numeric entry

Guidance will normally be given with regard to the rounding of answers, for example “to 2 decimal

places” or “to the nearest £” If no guidance is given, then candidates should give their answers to 2

decimal places

Examples of objective test questions for C01

Example question 1

The difference in the values (£) between point X and point Y on the profit volume chart shown above

represents:

A contribution

B profit

C breakeven

Example question 2

X Ltd manufactures a product called the “ZT” The original budget for next year was:

Annual sales 10,000 units

£ per unit

Selling price 20

Variable cost 14

Fixed costs 3

If the selling price of the ZT were reduced by 10%, the sales revenue that would be needed to

generate the original budgeted profit would be £ -

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Receive results and feedback when you finish

The pass mark for each Certificate exam is 50% A permanent credit is awarded to you if you score

50% or more

You will see your results and indicative feedback onscreen as soon as your assessment has finished

It will take between five and seven days for your results to show in your MY CIMA account

If you are successful, you will receive a certificate of achievement and your exam status will

automatically be updated at CIMA

If you are unsuccessful, the feedback will show where you should focus your studies in the syllabus

You can arrange your resit when you are ready

Calculators

Keep up to date with guidance on using calculators in the Certificate computer based assessments at

www.cimaglobal.com/exams

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Section D – Syllabus comparison

A The context of

management accounting

10%

A new section, introducing the concept of management accounting, and the role of the management accountant It considers both CIMA‟s definitions, as well as those

of IFAC It also explores the role that CIMA plays on behalf of various stakeholders

B Cost identification and

behaviour 25%

A Cost Determination 25% This section is an amalgamation of

2006 syllabus‟ Cost Determination, and Cost behaviour and Break Even analysis The FIFO, LIFO and AVCO methods of accounting for stock have been removed (but still appear in C2)

C Planning with

organisations 30%

C Standard Costing 15% This section combines 2006‟s

Standard Costing and Financial Planning and Control Piecework and the principles of incentive schemes have been removed

E Financial Planning and control 20%

All of this 2006 section is covered in Planning with Organisations

D Accounting control

systems 20%

D Costing and Accounting Systems 30%

This section has merely been renamed, plus the weighting has reduced from 30% to 20%

E Decision making 15% B Cost behaviour and Break

Even Analysis 10%

Most of this section is lifted from the

2006 Cost behaviour and Break Even Analysis NPV and IRR has transferred from the 2006 C3 paper;

and the payback method is new

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Section E – Exemptions

You may be exempt from some or all of the CIMA Certificate in Business Accounting exams if you

have a relevant degree, have completed the AAT Technician stage, or have studied another

professional accounting qualification You can find more information at

www.cimaglobal.com/exemptions

Before accepting any exemptions you should consider the CIMA syllabus for the subject and make

sure you are confident that you could pass it This material will be built on in the later stages of

CIMA‟s Professional qualification so it is important that you have a thorough understanding and good

knowledge of any subject before accepting an exemption

Section F - Useful reading

The CIMA certificate in business accounting 2011 syllabus (PDF 1MB)

Transition arrangements (PDF 27KB) between the 2006 and 2011 syllabi

Suggested study route and paper combination options (PDF 27KB)

Article published in the July/August 2011 issue of Financial Management summarising the subject

changes

Article published in the April 2011 issue of Velocity giving guidance on starting to study the certificate

level including suggestions on how long you should aim to complete it in, study times and advice on

which order to complete the subjects

Tips from students

Struggling with business English?

Struggling with mathematics?

Other useful articles from Financial Management and Velocity

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